Using IB Theory to Compare Arrival's Prospects for Internalization into China and US Markets

MANAGING
INTERNATIONAL
BUSINESS

Table of Contents
ESSAY.............................................................................................................................................3
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2

ESSAY
Using a IB theory, comparing and contracting Arrival's prospects for internalization into
China and US markets-
International management are the business operations in organization to serving the
markets and handling in multiple countries. Arrival Ltd is the electric manufacture company
which is headquartered in London UK. It claims their electric vehicles is the fist EV segments
which cost same with petrol and diesel equivalents. This study will be based on one of the core
IB theories as introduced in Week three modules in framework to compare the Arrival prospects
for the internationalization into two markets. It shows the competitive advantages in terms for
expansions of business. Also, it will be explained how the theory will work as a strategic tool for
expansion of the company. Various relevant texts will be considered in the theory for increasing
the knowledge of the aspect (Ali and et.al., 2021).
This theory is division of economics that identifies the behaviour of international
business. Also, this is based on the imperfections in-between product markets there are two main
intermediate products such as flows of linking to research and development to production and
follows of element and raw materials from upstream facility of production to downstream. There
are applications which mostly focuses in the knowledge of flow. Proprietary knowledge are easy
to address when intellectual rights like patents and trademarks are weak. With the powerful
protections the firm protect the knowledge by secrecy. Whereas the licensing of knowledge to
the local producers, they make efforts in their own production facilities. Internalization leads to
international and multinational enterprise because the knowledge is the public good. New
technology is linked with the firm and knowledge is transferred to other facilities (O'Higgins,
Aramburu and Andreeva 2021).
It appears when business realize the benefits to surpass the cost and when it directs
towards foreign investment firm may assist with commercial and political risk because of
unfamiliar with the foreign environment. This is the method of cost of moving business abroad.
These high cost may licence the outsource production to the individual firm or it can be produce
to home or export to the country instead (Meyer and Schotter, 2020). With insufficient
knowledge they may form multinational for assign supplies of raw materials and take the
guarantee of quality, continuous supply and for tax benefits from transfer pricing. In the links to
the international business with this theory, the study was mainly focused on environment while